Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the vertical axis
A) is greater along curve I.
B) is greater along curve II.
C) is the same along both curves.
D) cannot be compared for the two curves without more information.

Question

Quizplus · Accepted Answer

When a PPF is flatter, it means that the economy can produce more of one good without giving up as much of the other good. This implies that the opportunity cost of producing the good on the vertical axis is lower along curve I. Therefore, the answer is A, as the opportunity cost is greater along curve II.

Consider Two Straight-Line PPFs